AMC debt refinancing at 15%

AMC Pays 15% Yield on $400 Million Junk Bond to Refinance Debt

BY KEVIN SIMAUCHI
Oct. 14, 2022, 12:42 PM

• Yield on the offering was hiked from earlier talk of about 14%
• Cash from sale to be used to pay down debt of EU subsidiary

AMC Entertainment Holdings Inc sold a $400 million junk bond Friday, offering a whopping 15% yield to lure buyers to the deal that will refinance debt at one of its units.

The move is the latest example of a company willing to pay higher rates in an increasingly volatile market. Proceeds from the deal will go toward refinancing term loans held by AMC’s subsidiary, Odeon Cinemas Group Ltd., Europe’s largest theater chain.

The secured bond, led by Citigroup Inc., offers a coupon of 12.75% and a price of 92 cents on the dollar, according to people familiar ...